Faxes: Sainsbury uses fax machines to send both written and visual information electronically over the telephone line
Video conferencing: Sainsbury uses this when they need to have face to face meetings with people who are geographically separated
Internet: Sainsbury has a website which can be viewed by the customers to find out all about the current developments that are taking place in the fields in which Sainsbury operate. This is a benefit to the customer’s because it allows the customers to see how well they are doing etc
Media: Sainsbury uses the media such as TV, radio, magazines, press etc to advertise and promote their products, created with desk top publisher software.
Electronic data interchange: This is a network link that allows Sainsbury to pay suppliers electronically without the need for invoices and cheques, this reduces time, paperwork and costs
Electronic funds transfer: Electronic Funds Transfer (EFT) provides for electronic payments and collections e.g. switch or credit cards. EFT is safe, secure, efficient, and less expensive than paper check payments and collections. (This also concerns the banks and credit control agencies)
The main methods of internal communication Sainsbury uses
Face to face: Members of the staff communicate with each other sometimes when they are working together as a team or when they are seeking information
E-mail: This is used to forward any attachments to other members of the staff
E.g. From finance function to HR function
E-mail is much quicker, especially if sent overseas, and can be sent to more people at one time than regular methods
Telephone: This is to pass on information to other staff or enquire about something concerning the company
Meetings: This is used with the senior management such as the store, deputy and department managers. Meetings are also held with the staff. Senior management meeting usually takes place monthly and staff meetings held weekly.
Meetings can save a lot of time and can get feedback from the people at the meeting immediately. It also saves time on having to discuss things individually. Agendas and minutes can be written on word processor which then can be sent by e-mail or internet.
Electronic point of sale: This is where the customers pay for their goods, the tills are connected to the computer storing the stock database, when an item is sold its barcode is scanned and the product details including price will appear on the screen, after an item is sold the stock level of the item is automatically decreased
Paging devices: Sainsbury’s staffs uses a small electronic device which lets a person know when they are in need of contact
Bulletin boards/ office displays: Messages are put out on notice boards to note other members of staff of any recent news or event taking place e.g. Office party
Display product development: This is where people can see and comment on the scheme, this gives them the staff the chance to put their views across
Electronic data interchange: This is a network link that allows Sainsbury to pay people within the company electronically without the need for invoices and cheques, this reduces time, paperwork and costs so this method can be use internally and externally.
ICT on Sainsbury
ICT has had a major effect on Sainsbury because since the technology was introduced it has made the running of the company much easier. Every aspect of their operations uses IT for either monitoring or controlling
e.g.
Electronic point of sale
Electronic data interchange
Electronic funds transfer
These 3 types of information systems make Sainsbury’s living more easily because the systems accurately calculate the cost of a customer’s purchase, try to ensure that the store does not run out of products that customers want to buy and take the payment for goods from the customers.
When a product’s stock level falls before its re-order level the product will automatically be reordered by the computer system. Orders can be sent to suppliers by email, by post or fax. Using these computerised information systems speeds the process faster and keeps information accurate. This saves time and money and helps to make the operation of the company more efficient.
The key benefits of ICT on Sainsbury
Speed: ICT helps speed up the process of the things that take place day to day at Sainsbury’s e.g. transactions, communication between members of staff etc.
Without ICT, Sainsbury would be running very slow, information would be incorrect, files would need updating and they will lose customers
Cost: ICT helps to reduce the costs of making mistakes because ICT is fast, efficient & accurate where as doing things manually (without ICT) would result in a mistake being made and the cost of one mistake could cost the company money
Access: ICT gives you more access to other systems, if you have more access to ICT then communications are enhanced, this is a more efficient way to communicate, such as through EDI (electronic data interchange)
Wider audience: Using ICT where they can expand their range of goods, and able to sell more with the benefit of the ICT systems
The key problems of ICT on Sainsbury
Information overload: There may be a lot of information sent from the general public or members of the staff from other departments, so there can be a tendency to get data "overload". Also because of the Internet many people feel they are bombarded with too many items of information
E.g. students requesting information via e-mail
Teething problems: There may be problems with the systems, computers, networks etc that could prevent Sainsbury from doing their day-to-day tasks e.g. computers out of order, system failure with EPOS etc. (These problems could also be ongoing which makes it rather more difficult for the company)
Misuse: Staff might be using the ICT systems for personal use rather than for the purpose of the company e.g. downloading irrelevant information that doesn’t concern the company. This could waste the company’s resources and materials.
Training: Staff at Sainsbury may need to be trained to use the computers because they may be lack of skills and knowledge, therefore training would cost the company money e.g. not familiar with software, Slowness due to lack of keyboard skills etc
Computer crime: Lots of people try and put viruses thorough peoples email. But viruses are mainly used to get information off people’s computers or to wipe information off. People also try and hack into computer users and steal information off computers. This can be one of the worst crimes and the most damaging because there could be important information.
Health problems: There are health problems (eyesight problems etc.) that can occur when working with computers.
The impact of ICT within Sainsbury has been far reaching and dramatic, both internally and externally. The main strengths of this investment have been improved efficiency of not only staff, but also the whole operating process of large stores. What's more, technology has enabled expansion of the customer base, which would not have been possible previously. E.g. Through internet shopping
In addition, the efficiencies and cost savings brought about by technology have enabled Sainsbury to become more competitive within the market place.
The introduction of technology has also been active in enabling Sainsbury to expand their operations overseas. It has helped communication between staff and management in the UK and abroad. Before the introduction of ICT, establishing contact with stores elsewhere would have been difficult and time consuming. There would have also been communication problems in terms of time differences. E-mails however do not depend on time. Previously it would have been difficult to communicate by phone to distant countries in view of the different time zones and working weeks. Technology has greatly eased such problems.
